Updates and modifies the tax abatements for certain solar and electric storage systems; grants real property tax abatements for solar parking canopy structures.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6113B
SPONSOR: Carroll TITLE OF BILL:
An act to amend the real property tax law, in relation to updating and
modifying the tax abatements for certain solar and electric storage
systems
PURPOSE:
To extend and enhance the solar electric generating system and electric
storage system tax abatements for New York City.
SUMMARY OF PROVISIONS:
Section 1 clarifies that the tax abatement for solar electric generating
systems and electric energy storage equipment can be used in conjunc-
tion. It defines eligible expenditures as reasonable expenditures for
materials, labor costs properly allocable to on-site preparation, assem-
bly. and original installation, architectural and engineering servic-
es,..and designs and plans directly related to construction or installa-
tion and adds solar parking canopy structures as an eligible system.
Section 2 extends the period of the abatement for both solar and elec-
tric energy storage systems through 2035 and sets the terms of each
abatement as the lesser of thirty percent of expenditures or $250,000
taken in equal increments annually over a four-year period.
Section 3 includes conforming language extending the abatement program
to January 1, 2036.
Section 4 sets the effective date.
JUSTIFICATION:
This legislation would extend and strengthen the existing incentive
programs passed by-the legislature and signed into law by the Governor
to encourage the installation of solar electric generating systems and
energy storage systems, in connection with class one, class two and
class four properties in New York City. The program while enabled by the
State is administered and paid for by the City. By extending the period
for when properties can apply for the abatement to 2036 and allowing
both types of abatements to be used together it better aligns with
federal incentives from the Inflation Reduction Act allowing for the
leveraging of federal dollars. This legislation is consistent with the
commitments of New York State in the Climate Leadership and Community
Protection Act (CLCPA) and the City of New York through Local Law 97 to
reduce greenhouse gas emission reduction and to provide cleaner, more
reliable power for every New Yorker.
LEGISLATIVE HISTORY:
This is a new bill.
FISCAL IMPLICATIONS:
TBD
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
6113--B
2023-2024 Regular Sessions
IN ASSEMBLY
April 3, 2023
___________
Introduced by M. of A. CARROLL, LEVENBERG, COLTON, SIMON, DICKENS --
read once and referred to the Committee on Real Property Taxation --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee -- reported and referred to the Commit-
tee on Ways and Means -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the real property tax law, in relation to updating and
modifying the tax abatements for certain solar and electric storage
systems
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivisions 2, 7, and 8 of section 499-aaaa of the real
2 property tax law, subdivisions 2 and 8 as amended by chapter 412 of the
3 laws of 2018 and subdivision 7 as added by chapter 473 of the laws of
4 2008, are amended to read as follows:
5 2. "Application for tax abatement" shall mean an application for a
6 solar electric generating system [or] and/or electric energy storage
7 equipment tax abatement pursuant to section four hundred ninety-nine-
8 cccc of this title.
9 7. "Eligible building" shall mean a class one, class two or class four
10 real property, as defined in subdivision one of section eighteen hundred
11 two of this chapter, located within a city having a population of one
12 million or more persons. No building shall be eligible for more than one
13 tax abatement pursuant to this title prior to January first, two thou-
14 sand twenty-four.
15 8. "Eligible solar electric generating system expenditures" and
16 "eligible electric energy storage equipment expenditures" shall mean
17 reasonable expenditures for materials, labor costs properly allocable to
18 on-site preparation, assembly and original installation, architectural
19 and engineering services, and designs and plans directly related to the
20 construction or installation of a solar electric generating system [or]
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10389-04-3
A. 6113--B 2
1 and/or electric energy storage equipment installed in connection with an
2 eligible building. Solar parking canopy structures shall be considered a
3 solar electric generating system for the purposes of this subdivision.
4 Such eligible expenditures shall not include interest or other finance
5 charges, or any expenditures incurred using a federal, state or local
6 grant.
7 § 2. Paragraph (e) of subdivision 1 of section 499-bbbb of the real
8 property tax law, as amended by section 1 of item B of subpart H of part
9 XXX of chapter 58 of the laws of 2020, is amended and a new paragraph
10 (f) of subdivision 1 is added to read as follows:
11 (e) if electric energy storage equipment is placed in service on or
12 after January first, two thousand nineteen, and before January first,
13 two thousand twenty-four, for each year of the compliance period such
14 tax abatement shall be the lesser of (i) ten percent of eligible elec-
15 tric energy storage equipment expenditures, (ii) the amount of taxes
16 payable in such tax year, or (iii) sixty-two thousand five hundred
17 dollars[.]; or
18 (f) if the solar electric generating system and/or electric energy
19 storage system is placed in service on or after January first, two thou-
20 sand twenty-four, and before January first, two thousand thirty-five,
21 for each year of the compliance period such tax abatement shall be the
22 lesser of (i) seven and one-half percent of eligible solar electric
23 generating system and/or energy storage system expenditures, (ii) the
24 amount of taxes payable in such tax year, or (iii) sixty-two thousand
25 five hundred dollars.
26 § 3. Subdivision 1 of section 499-cccc of the real property tax law,
27 as amended by section 2 of item B of subpart H of part XXX of chapter 58
28 of the laws of 2020, is amended to read as follows:
29 1. To obtain a tax abatement pursuant to this title, an applicant must
30 file an application for tax abatement, which may be filed on or after
31 January first, two thousand nine, and on or before [March fifteenth]
32 January first, two thousand [twenty-four] thirty-six.
33 § 4. This act shall take effect immediately.
